8/14/2019 Positive Real Estate News - Vol 3, Issue 2 - March 11, 2010

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 March 11, 2010 Vol. 3, Issue 2

What are real estate professionals saying to homebuyers and sellers about current market conditions? Thesuccessful brokers and sales associates are talking about the strengths that exist in the market. Below are

positive angles that appeared recently in the media and underscore why it is a good time to buy real

estate. 

Mortgage Delinquencies Decline in Fourth Quarter 2009

A smaller percentage of mortgages were delinquent and the rate of those entering the foreclosure processslowed in the fourth quarter of 2009, possible signs that the foreclosure crisis that has gripped many of 

the nation’s housing markets is finally starting to ease. “We are likely seeing the beginning of the end of 

the unprecedented wave of mortgage delinquencies and foreclosures that started with the subprimedefaults in early 2007.” 

--  Jay Brinkmann, chief economist of the Mortgage Bankers Association, “Is It the Beginning of the End for HousingCrisis?  ,” by Amy Hoak, RISMedia, March 8, 2010.

Realty Times: Consumer Spending Points to Improving Economy

 “Despite blizzards and bad weather in January and early February in large portions of the country, the

Fed's regional banks found consumer spending and manufacturing output increasing. Both are keyindicators of improving economic conditions ahead, especially consumer spending, which accounts for

70% of U.S. economic activity and directly affects employment growth.

  A report issued by the Commerce Department last week showed that consumer spending increased

by one half of one percent in January - outpacing income growth for the fourth straight month.

  Consumers are slowly coming out of their shells, regaining confidence, and beginning to feel goodagain about buying more goods and services.” 

-- Kenneth R. Harney, “Real Estate Outlook: Federal Reserve Beige Book  ,” Realty Times,March 10, 2010.

Mortgage Applications for New Purchases Rise

Mortgage applications in the U.S. rose for a second week, led by a 5.7% increase in purchases that may

indicate the renewal of a homebuyer tax credit is starting to invigorate demand. The increase in requests

for purchase financing may be a precursor of sales gains in coming months. “The strength of the springselling season will be a good indication of the underlying trend in the recovery. We continue to expectsales to climb during the spring, peaking in June when the homebuyer tax credit expires for closed

contracts.” 

-- Michelle Meyer, a senior economist at Barclays Capital Inc., “U.S. MBA Mortgage Applications Index Rose 0.5% LastWeek  ,” by Shobhana Chandra, Business Week, March 10, 2010.

8/14/2019 Positive Real Estate News - Vol 3, Issue 2 - March 11, 2010

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 Regional Update: Good News from Markets around the Nation

New Jersey 

In an effort to boost the state's housing market, New Jersey legislators have introduced a bill that wouldgive home buyers an income tax credit of up to $15,000, spread over three years.

  The bill would target new construction, with 75% of the tax credits going to buyers of newly builthomes and 25% going to buyers of existing homes.

  Because the tax credit's cost is capped at $100 million, a total of 6,667 buyers would be able to

claim the credit — 5,000 of them new-home buyers. The credits would be available on a first come,first served basis.

  To qualify, home buyers would have to buy during 2010 and continue to use the home as theprimary residence for three years. There would be no income limits on buyers to claim the credit.The credit would be for 5% of the home purchase price, or $15,000, whichever is less.

 “The economic output that will be generated from these homes being built will be quite significant and willreally help to stimulate the economy.” 

-- N.J. State Senator Paul Sarlo, co-sponsor of the bill, “Bill Would Create N.J. Homebuyer Tax Credit  ,” by Kathleen

Lynn, North Jersey Record, March 8, 2010.

Minneapolis

The local housing market is off to a relatively good start for sellers in 2010. Numbers released Wednesday(March 10) show median sale prices for homes in the Twin Cities were up during the first two months of 

the year compared with January and February of 2009. It was the first time the local housing market

posted two straight monthly increases in median price since 2006, according to figures from local realestate groups. February also saw the strongest annual monthly gain in median price since 2005. “Themarket share of traditional, non-foreclosure homes’ has really grown in the last year. That's tilting prices

upward and stabilizing the market.” 

-- Brad Fisher, president of the Minneapolis Area Association of Realtors, “Home Sales Show Some Spunk  ,” by Christopher Snowbeck, Twin Cities Pioneer Press, March 10, 2010.

Denver

Sales and selling prices of existing homes in metro Denver improved again in February, showing that thehousing market continues to slowly recover, according to local real estate brokers. Highlights of lastmonth’s home sales included an increase in sales of $1 million-plus homes, a 20% jump in the average

selling price for condos and a 15% rise in median sold price for houses.  “All in all, we’re showing signs of astrengthening housing market. There’s not as much volatility in the housing market as there was a year ora year-and-a-half ago.” 

-- Gretchen Faber, Denver real estate broker, “Denver Home Market Shows Further Improvement  ,” by Paula Moore, Denver Business Journal, March 9, 2010.

The median price for a single-family home in metro Denver rose nearly 15% in February compared withthe same month a year ago. “First-time homebuyers are out in force. We've also seen investors come out

this month. In the lower-priced markets, we have both investors and first-time homebuyers out therebidding on the same properties.” 

  Gary Bauer, real estate analyst, “Metro Home Prices Rise 15% over Feb. 2008 ,” by Margaret Jackson, Denver 

Post, March 10, 2010.